Newsroom
26 May 2017
The Edge : RCE Capital 4Q profit triples, declares 3 sen dividend
 
RCE Capital 4Q profit triples, declares 3 sen dividend
Adam Aziz / theedgemarkets.com
May 26, 2017 20:52 pm MYT 

KUALA LUMPUR (May 26): RCE Capital Bhd closed its fourth quarter ended March 31, 2017 (4QFY17) with its net profit tripling to RM21.25 million, from RM6.92 million in the same quarter last year on lower loan impairment and higher revenue.

Earnings per share rose to 6.35 sen from 2.13 sen per share a year ago.

According to its bourse filing, 4QFY17 revenue grew 29.24% to RM57.25 million from RM44.3 million, driven by higher interest and fee income arising from the enlarged consumer financing segment's loan base.

Amid the better results, RCE Capital has proposed a final dividend of 3 sen per share — the only dividend for FY17. It gave a total of 14 sen in dividends in FY16.

This is despite posting a better performance overall in its full-FY17, when net profit nearly doubled to RM78.95 million against RM39.57 million in FY16, mainly from the enlarged loan base in its consumer financing segment, which mitigated losses from its investment holdings, management services and other segment.

Revenue also grew 37.53% to RM223.33 million, from RM162.39 million a year ago.

Looking forward, RCE Capital said expects to sustain its FY17 performance over the next year by leveraging on its commitment to asset quality and swift turnaround time.

"Process simplification initiatives incorporating improved and upgraded technology continue to be developed to enhance channel management and product delivery in order to stay relevant and add value to the existing operations," added the company.

At 5pm, RCE Capital closed 5 sen or 2.66% lower at RM1.83, with 1.5 million shares traded. Its market capitalisation stood at RM619.97 million.